Why It's Time to Put Old Compensation Models Out to Pasture For generations, sweat equity wasn't talked about. It was assumed. Work harder than anyone else, take home the same (or less) than the hired help, and trust that one day, the farm-or a good chunk of it-would be yours. Money was tight, and for many, it worked out just fine… until it didn't. The truth is, today's dairies track the hours and contributions of employees and pay them accordingly. Why not do the same for family members? The old sweat equity model-where family members accept below-market wages in exchange...
Category: Business Growth Strategy
Business Growth Strategy, Uncategorized
It’s Not Luck. It’s Intentional
Common Practices of Top Tier Farms Let's talk about something that can really make a difference in your farming journey-professionalizing your farm. If the word professionalizing doesn't resonate with you, then let's call it being Intentional. Intentional about what? As someone who works across all sectors in agriculture, it's my humble opinion that dairy is the most complex. Yes you need great animal husbandry and good milk production, but there is more. So why do some farms tend to pull ahead over time? Why do some farms just have "all the luck?" It's not luck at all, but rather intentional...
Business Growth Strategy, Uncategorized
When NOT to Invest in Your Dairy
Sustain Your Dairy by Investing Elsewhere When does not investing in the dairy actually improve the odds of sustaining that family dairy? Each year, farm families across the USA face a dilemma: how to provide 25+ years of reliable retirement income for a retiring owner while still allowing the farm to grow. All too often, a large payout or decades of payments to an owner hamstring a dairy. It's hard to expand if large amounts of cash leave the business each year. If more than one owner is retiring at the same time, it's even more difficult. Questions such as:...
Business Growth Strategy, Leadership
Do you have the right people on your farm?
The "right people" is a hard thing to measure and it's different for every farm. But here are some ideas. Written for MILK/DairyHerd and originally published 3/7/2025. It's the time when many businesses prepare for annual reviews. Some have sophisticated employee measurement metrics, but many do not. Whether you do or not, I'm guessing you want two basic things. The right people working in the business (the wrong ones somewhere else) and placing these "right people" in the "right spot." The "right people" is a hard thing to measure and it's different for every farm. But here are some ideas. Levels...
Business Growth Strategy, Succession Planning
Are you intentional with your farm business in these areas?
Unity, drive, talent, grit, asset growth and future planning are key areas to focus on to sustain the family business through the next generation. Written for Progressive Dairy and originally published March 13, 2025 here. I'm sure you have heard the adage that the third generation loses the farm. This is not unique to America, and this saying has existed in almost all cultures over hundreds of years. Sustainability is a buzzword we often hear, but what about the sustainability of the family farm? What does it take for a farm to sustain itself generation after generation? Why does it...
Business Growth Strategy
The Secret Sauce of Successful Farms
Common characteristics among top-tier farms include having a shared vision and set of values, staying focused on goals, practicing accountability, avoiding procrastination, building trust within their team and effectively managing data to make management decisions. Written for Progressive Dairy and originally published 1/19/2025 in Issue 2. As I write this article, there are about 90 pounds of ribs on my barbecue, slow cooking to fall-off-the-bone juiciness. My barbecue technique, process and sauce have been tweaked many times over the years. Today, there are fewer tweaks, and the results are consistent. Sometimes, people ask me if I buy special ribs...
Business Growth Strategy
Time is valuable – Tips for doing what matters most
Do you get everything you want done in a day, a week, or a month? Written for Farm Futures and originally published in their Nov/Dec 2024 issue. As we work with our clients, we see recurring themes that are key for farms to accelerate their growth. Time management of the owners and key employees is a key differentiator for scaling farms up. Stephen Covey, author of the popular book, "The 7 Habits of Highly Effective People," created a time matrix to sort tasks by importance and urgency. We have used his concepts in our coaching and can attest it's...
Business Growth Strategy, Succession Planning, Uncategorized
Keep the Peace: Farm business vs. farm life
As farms become larger, many families conclude that perks must be limited and keep business more separate from personal life. Written for Farm Futures and published in the February 2024 issue. Most families get along great and, on most days, enjoy working together. This can lead the family to believe they are in alignment on essential issues. But, often, there is enough differences between some fundamental principles that someday will cause friction. Alignment around these principles falls under an underused area of transition planning called family governance. They are critical in keeping the peace and creating a strong family farm. ...
Business Growth Strategy
Get a Better ROT (Return-On-Time)
There is a direct correlation between solid meetings and ROT. Written for MILK and originally published in the Nov. 2023 quarterly issue. The meeting room was quiet as the owners and the next generation entered. The meeting was supposed to start about fifteen minutes ago, but folks were slow coming in. No one was entirely comfortable. Everyone was thinking about something else outside, but one of the owners had called a meeting, so they all came. It was unclear what the meeting was about, but each person had an idea in their mind what it SHOULD be about. The last...
Business Growth Strategy, Succession Planning
Two Habits of Successful Business Families
The natural way of a family business is a decline over time. So, successful family businesses must take actions to counteract the decline. Written for Farm Futures Dec 2023. You have heard the adage. "The first generation builds it, the second generation maintains it, and the third generation loses it." This is not just an American problem; it is an international phenomenon. The decline of family farms is due to tendencies that repeat themselves. The natural way of a family business is a decline over time. So, successful family businesses must take unnatural or unorthodox actions to counteract the...